ProPetro Holding Corp (PUMP)

Days of inventory on hand (DOH)

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Inventory turnover		80.73	234.43	222.68	316.50	105.49
DOH	days	4.52	1.56	1.64	1.15	3.46

December 31, 2023 calculation

DOH = 365 ÷ Inventory turnover
= 365 ÷ 80.73
= 4.52

The Days of Inventory on Hand (DOH) for ProPetro Holding Corp has shown fluctuations over the past five years. In 2023, the DOH increased to 4.52 days from 1.56 days in 2022, which indicates that the company held inventory for a longer period in 2023 compared to the previous year. This could suggest potential issues with inventory management efficiency or changes in the company's operations that resulted in higher inventory levels.

Comparing the recent data to 2021 and 2020, there was a noticeable increase in inventory holding periods. In 2021, the DOH was 1.64 days, up from 1.15 days in 2020, reflecting a trend of increasing inventory holding periods. This may imply challenges in managing inventory levels effectively or changes in demand patterns that required higher inventory levels.

However, when looking further back to 2019, the DOH was 3.46 days, higher than in recent years. The decrease in the DOH from 2019 to 2022 suggests an improvement in inventory management efficiency during that period.

Overall, the analysis of ProPetro Holding Corp's DOH indicates varying trends in inventory management efficiency over the past five years, with the most recent increase in 2023 raising potential concerns about inventory holding periods and operational changes. An in-depth investigation into the underlying reasons for these fluctuations would be beneficial for assessing the company's inventory management practices and operational performance.